Australian shares closed lower on Monday as investor sentiment weakened following escalating geopolitical tensions in the Middle East, after Donald Trump ordered a blockade of the Strait of Hormuz.
The S&P/ASX 200 Index fell 34.6 points, or 0.4%, to 8,926.0, with eight of the 11 sectors finishing in negative territory as risk appetite deteriorated.
Interest rate-sensitive technology stocks led the declines. WiseTech Global dropped 1.3%, Xero lost 1.5%, and TechnologyOne fell 1.7%.
Life360 slumped 8.1%, extending losses after chief executive Lauren Antonoff said in a LinkedIn post that the company would cut jobs due to the impact of artificial intelligence.
In contrast, energy stocks advanced as oil prices surged back above US$100 per barrel on fears of further supply disruptions through the Strait of Hormuz.
Santos Limited rose 1.7%, Woodside Energy gained 2.6%, Beach Energy climbed 3.7%, and Ampol added 2.6%.
In corporate developments, the A2 Milk Company plunged 13% after downgrading its 2025–26 profit outlook, citing supply chain disruptions in China that have led to product shortages.
Monash IVF Group surged 15.8% after receiving a revised A$351 million, 90¢-a-share non-binding takeover proposal from a consortium led by Genesis Capital and Washington H Soul Pattinson, improving on a previously rejected 80¢ bid.
Meanwhile, Telix Pharmaceuticals rose 7.7% after announcing a strategic collaboration with Regeneron Pharmaceuticals to co-develop cancer therapies, with potential milestone payments of up to US$2.1 billion.
On the bond markets, yields edged higher, with the 10-year rate rising 0.5% to 5.02%, while the 2-year yield held steady at 4.713%.
